The FCA has for the first time exercised a new publication power which came into effect last October by publishing two warning statements. They relate to proposed enforcement action against two individuals involved in the submissions used to set interest rate benchmarks. The FCA has not named the individuals under investigation, nor is the firm named in either case.
Warning Notice Statement 14/1 indicates that a trader at a bank who was involved in making interest rate benchmark submissions (the Submitter) has received an FCA warning notice because the FCA considers that the Submitter was knowingly concerned in the contravention by the bank of Principle 5 (Market Conduct) for significant failings in relation to an interest rate benchmark over a period of more than two years.
The FCA considers that the Submitter took into account the Submitter’s own trading position and requests from other traders at the bank, traders at another bank, and a broker when making submissions in an attempt to influence their submissions.
View Warning Notice Statement 14/1 – individual, 3 February 2014